The method of electrical explosion of metal wire in organic liquid was adopted to prepare carbon encapsulated nanoparticles. In the medium of absolute ethyl alcohol, under the high-voltage pulse current (HVPC), the high purity zirconium wire became fusion, gasification, expansion and explosion, accompanied with separating of carbon out of ethanol and reaction of carbon and zirconium, carbon encapsulated ZrC nanoparticles formed. The energy, voltage and current in the experiments were measured to analyze the influence of them on the products. The products were analyzed by X-ray diffraction technique (XRD), transmission electron microscopy (TEM) and high power transmission electron microscopy (HTEM). The results show that the carbon encapsulated ZrC nanoparticles were fabricated successfully. The diameter range between 10nm-150nm. For the voltage of 4kv, 8kv and 12kv, the average size of the products is 24.9nm, 41.4nm and 43.9nm, respectively. Finally, the procedure and mechanism of fabrication of the carbon encapsulated ZrC nanoparticles were discussed preliminarily.